Bank of Queensland Limited
(ASX: BOQ) and Bendigo and Adelaide Bank Ltd (ASX: BEN) are being sued by ASIC, time to sell shares?
BOQ and Bendigo Bank are two of Australia’s largest regional banks. They aren’t as big as the ‘big four’ ASX banks, but they are big enough to catch the attention of the corporate regulator, Australian Securities and Investments Commission (ASIC).
ASIC Takes Action
ASIC is taking legal action against BOQ for contract terms in some small business contracts between November 2016 and June 2019 which ASIC is asserting were unfair.
BOQ said that it will compensate any customers who had been adversely affected and the regional bank believes the total compensation will be limited.
ASIC’s legal action against Bendigo Bank are similar, it’s regarding unfair contract terms from its Delphi Bank and Rural Bank brands between 2016 and June 2019, the contract was updated in July 2019.
It shows that since the Royal Commission, ASIC is more likely to take legal action against banks that misbehave.
I’m not sure how much profit growth these smaller regional banks can produce over the medium term and long term, I would much rather buy the shares of the growth businesses in the free report below.
[ls_content_block id=”14947″ para=”paragraphs”]
[ls_content_block id=”18380″ para=”paragraphs”]
